Selasa, 12 Juli 2011

Indonesia Cement Sector: Strong Demand Continues - Credit Suisse

Good cement consumption growth outlook. Price outlook, however, remains weak as industry players are very careful in raising prices to maintain market share. So far this year, we only saw 2-3% price increase – largely driven by higher energy prices. Capacity expansions for the industry will not be on stream until the next 3-4 years, and these new capacity will be well absorbed by the market if the government accelerates its infrastructure development program. Land clearing bill, expected to be passed over the next 9 months is a key catalyst for the sector, in our view.